Family fortunes

I am married with a gross salary of £21,700. I drive a company car value 15200 (diesel) and get fuel paid by the company. I drive over 18,000 business miles. My wife earns £3,300 and we have two children, aged 5 and 1. How will the budget affect us? CRB, Bingley.

Rachel Day, assistant tax manager at Grant Thornton, says: The two main areas which will affect you are the increase in the National Insurance rates and the creation of the new child tax credit.

The increase in the National Insurance rate will mean that (provided your salary does not increase) you will pay an additional £170.85 in National Insurance during the 2003/2004 tax year.

In terms of the new child tax credit, due to yours and your wife's joint income you will not qualify for any of the additional elements of the new credit, and you will simply receive the basic 'family element' of the credit, namely £545 for the year to 5 April 2003.